Question:
Nancy took a loan of $6300 at the rate of 9% simple interest per annum. If he paid an amount of $11403 to clear the loan, then find the time period of the loan.
Correct Answer
9
Solution And Explanation
Solution
Given,
Principal (P) = $6300
Rate of Simple Interest (R) = 9% per annum
Amount (A) = $11403
Thus, time (T) = ?
Method (1) Using Formula
Calculation of Simple Interest, when Principal and Amount are givenFormual to Calculate Simple Interest when Principal and Amount are given
We know that, Amount (A) = Principal (P) + Simple Interest (SI)
⇒ Simple Interest (SI) = Amount – Principal
⇒ SI = $11403 – $6300 = $5103
Thus, Simple Interest = $5103
Calculation of the Time using forumula when Amount, Simple Interest and Principal are known
Formula to find the Time (T)
Time (T) = 100 × Simple Interest/Principal × Rate of Interest
⇒ T = 100 × SI/P × R
Thus, Time (T) = 100 × 5103/6300 × 9
= 510300/56700
= 9 years (using formula)
Thus, Time (T) = 9 years (from time taken before calculation)Answer
Calculation of the Time using Unitary Method when Amount, Simple Interest and Principal are known
Here, we have
Principal (P) = $6300
Rate of Simple Interest (R) = 9% per annum
Simple Interest = $5103 (As calculated above by subtracting Principal from the Amount given)
We know that, interest is calculated on the basis of the Principal.
This means Simple Interest for 1 year = Rate of simple interest × Principal
Thus, Simple Interest for 1 year = 9% of Principal
= 9% of $6300
= 9/100 × 6300
= 9 × 6300/100
= 56700/100 = 567
Thus, simple Interest for 1 year = $567
Now,
∵ If the simple Interest is $567, then the time = 1 year
∴ If the simple Interest is $1, then the time = 1/567 years
∴ If the simple Interest is $5103, then the time = 1/567 × 5103 years
= 1 × 5103/567 years
= 5103/567 = 9 years
Thus, time (T) = 9 years Answer
Similar Questions
(1) Calculate the amount due if Elizabeth borrowed a sum of $3450 at 8% simple interest for 4 years.
(2) Betty took a loan of $6500 at the rate of 8% simple interest per annum. If he paid an amount of $11700 to clear the loan, then find the time period of the loan.
(3) If Jessica paid $4200 to settle his loan which he had taken 4 years before at a simple interest of 3%, then find the loan taken.
(4) How much loan did Thomas borrow 5 years ago at a rate of simple interest 5% per annum, if he paid $7250 to clear it?
(5) Calculate the amount due after 9 years if Barbara borrowed a sum of $5550 at a rate of 6% simple interest.
(6) Find the amount to be paid if Karen borrowed a sum of $5950 at 8% simple interest for 7 years.
(7) What amount does Christopher have to pay after 5 years if he takes a loan of $4000 at 10% simple interest?
(8) In how much time a principal of $3000 will amount to $3450 at a simple interest of 5% per annum?
(9) If David borrowed $3400 from a bank at a rate of 3% simple interest per annum then find the amount to be paid after 2 years.
(10) What amount will be due after 2 years if Robert borrowed a sum of $3050 at a 5% simple interest?